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New Edgewater, Colorado Minimum Wage Ordinance Highlights Compliance Challenges

08 Nov

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Update Applicable to:

Employers with one or more covered employees as defined by the ordinance, who perform work in the city of Edgewater, Colorado.

What happened?

The Colorado locality of Edgewater has enacted its own local minimum wage ordinance, which takes effect January 1, 2024.

What do employers need to do?

Employers should comply with the minimum wage ordinance for Edgewater City, be mindful of the changes and obligations that said law imposes and for those that have multiple cities, states, or federal laws to comply with.

What are the details?

Edgewater’s ordinance applies to employers with one or more covered employees, which are defined as individuals performing or expected to perform, four or more hours of work for an employer in any given week in Edgewater.

For employers without a physical location in Edgewater, but who might send employees to perform work in the city, the ordinance does not address how employers track, or employees demonstrate, work in Edgewater.

For food and beverage workers, however, employers may claim a tip credit of up to $3.02 per hour based on tips regularly and received by such an employee.

Employers must post the notice of the Edgewater minimum wage in a prominent and easily accessible place to employees, or if that is not feasible, employers can provide the notice electronically or in physical form to each employee individually. Employers must also keep payroll records that demonstrate compliance with the ordinance for at least three years.

The ordinance establishes pre-set rates for 2024 through 2028.

Beginning in 2029, and each subsequent calendar year, the minimum wage will be set by the city council based on increases in the Consumer Price Index (CPI) for the Denver-Aurora-Lakewood Area but if the local minimum wage rate in Denver exceeds Edgewater’s CPI-adjusted rate, the new Edgewood minimum wage will match Denver’s.

For more information, please see the links below:

City of Edgewater Ordinance No. 2023 – 07

Law Firm: Article 1

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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